Core earnings rose 62% yoy to a new record high of Bt12.6bn in FY22 as revenue increased 24% to Bt91.9bn and a record EBITDA margin of 25.1% beat the company’s target. The value of the company’s assets has increased by 2.75 billion baht from many hospital valuations that are made every year 5. BDMS announced the final dividend payment of 0.30 baht per share, representing a yield of 1%, established XD on March 8. .
Core business profit in 4Q fell 8% qoq to 3.1 billion baht.
Profit fell due to i) revenue fell 1% to 23.5 billion baht as Thai patient revenue fell 4% to 16.5 billion baht, accounting for 73% of hospital revenue. This is due to a 78% drop in COVID-related revenue (representing 2% of 4Q revenue, down from 9% in 3Q). Thai patient income will increase by 6% qoq, while foreign patient income will continue to rise by 9% qoq to Bt6.1bn (accounting for 27% of total revenue) due to strong backlog demand from the Middle East , Australia, and Australia from CLMV countries
Gross profit rose 0.4% to 37.2% in 4Q.
Increased gross profit from complex treatment for foreign patients and cost reduction projects
There is upside to the FY23F earnings forecast.
We believe our core profit forecast of Bt12.9bn is conservative. And the revenue trend is expected to continue to be good for Thai and foreign patients (new markets include Saudi Arabia, China and Bangladesh).
Maintain purchase recommendation
We will revisit our estimates after next week’s analyst meeting. At the latest closing price, TTR is an attractive 22%.
